STATEHOUSE NEWS: Backlash back story - the leadup to marijuana summit 2.0

Tuesday

Feb 20, 2018 at 10:25 AMFeb 20, 2018 at 10:33 AM

By Craig SandlerSTATE HOUSE NEWS SERVICE

We always knew the next marijuana summit we put on would be interesting, but things seem to have gotten maybe a little TOO interesting.

As that confab approaches (March 2, Massachusetts Continuing Legal Education Center at 10 Winter Place in Boston), it’s gotten hard to keep track of the rapid, alarming, enormous developments around the developing industry.

Between new federal enforcement ambiguity, a round of regulatory admonitions from the Baker administration, and a deadline of July 1 for retail marijuana to be available in the Commonwealth, the heat is on both regulators and a new industry to deliver. The State House News Forum’s Massachusetts Marijuana Summit will feature an opening address by Cannabis Control Commissioner Shaleen Title, to be followed by two panels. One will focus on the new regulations and the challenges of local licensing; the second will feature entrepreneurs in the industry, who will discuss a range of challenges they and the industry face.

Herewith, an attempt at clarity in the form of a quick chronology of 2018. Summit attendees should look for an updated print version at the event.

JAN. 4:

U.S. Attorney General Jeff Sessions announces the Trump administration is rescinding the Cole Memorandum, which had essentially instructed federal law enforcement not to go after the legitimate marijuana industry in states where pot has been legalized.

Newly-appointed U.S. Attorney for Massachusetts Andrew Lelling issues a statement that his office will prosecute marijuana offenses, but focus on bulk traffickers and gangs operating outside of regulatory structures.

Gov. Charlie Baker says his administration opposes rescinding the memo, and will support the work of the Cannabis Control Commission. The CCC is aiming to issue the rules for the rollout of retail pot March 9. Draft regulations were issued in late December for public comment and revision.

JAN. 8:

Lelling says his office "cannot...provide assurances that certain categories of participants in the state-level marijuana trade will be immune from federal prosecution," throwing leaders of the would-be industry (growers, retailers, financiers) from concern into a panic.

JAN. 9:

Industry leaders and government executives say they need more clarity from Lelling as to his intentions. Gov. Baker tells reporters: "I would like to see his limited resources focus on the elements that are killing many people every day here in the commonwealth, which is fentanyl and that's going to be my message to him."

Baker, Massachusetts Attorney General Maura Healey and state Treasurer Deborah Goldberg -- all of whom opposed legalizing recreational marijuana -- all say they continue to support the work of the CCC and carrying out the will of the voters.

CCC Chairman Steven Hoffman reiterates the commission will go on with its work and intends to meet the July 1 deadline for the opening of legal pot shops. "We have a job to do and we're going to continue to do the job," he says. "That's really the only reaction we have... we're going to continue to do that job, and build and regulate this industry as best as we can."

Most of the state's medical marijuana dispensaries begin refusing credit and debit cards because their processing companies disengage, from fear they could be charged with playing accessory to drug crimes under federal law.

JAN. 11:

The CCC issues 10 pages of guidance explaining to municipalities how the new law and regulations are designed to work and what to expect if they allow retail sale.

JAN. 17:

Hoffman says the CCC has not decided whether to reach out to Lelling and get some guidance of its own, as to how aggressively he plans to pursue marijuana retailers should they start up business.

JAN. 18:

Hoffman says Commissioner Britte McBride in fact had reached out to Lelling, only to be told by his office that as a prosecutor, he is constrained from discussing the matter with regulators.

JAN. 24:

Lelling tells reporters that while he reserves the right to prosecute any and all marijuana crimes, the opioid crisis will be his focus. "The number one enforcement priority for my office is the opioid crisis. Twenty one hundred people in Massachusetts were killed by opioid overdoses last year, not marijuana overdoses, so that is where my resources are going right now," he says.

JAN. 25:

Sen. Elizabeth Warren and 53 other members of Congress submit a letter to President Trump asking him to reinstate the Cole memo. "This action has the potential to unravel efforts to build sensible drug policies that encourage economic development as we are finally moving away from antiquated practices that have hurt disadvantaged communities," says the letter. "This new guidance will have a chilling effect across the country in states that have worked tirelessly to implement voter-approved laws, creating legal and economic uncertainty."

JAN. 29:

Baker says he’ll be meeting with Lelling in February.

FEB. 5:

High-ranking Baker administration attorney Bob Ross writes to the CCC, telling them the agency’s draft regulations go too far. Pot cafes, sales in cinemas, home delivery-only businesses -- none of them should be allowed in the first phase of retail marijuana retailing, the administration contends. An aggressive, expansive opening of the trade will cause public health and safety problems like underage use and stoned driving, Ross says.

As the CCC opens 10 days of public comment on its draft regulations, the Massachusetts Prevention Alliance tells its members to come out in force against a broad approach to what's permitted. MPA says the proposed regs "benefit the marijuana industry, increase access to our youth, increase the black market, and drive further health disparities and inequities in some of our most vulnerable communities."

Hoffman tells WBZ’s Jon Keller he expects the CCC to stay on track for its milestones: regulations discussed by the CCC Feb. 26-28, finalized by March 9, license application process commencing April 1, first licenses issued June 1, and retail sales commencing July 1. "It's more important to do this right than on time but right now we think we can do both," he says.

The Department of Revenue says it's seeking public comment on regulations of its own, for the levying and collection of the 6.25 percent sales tax, 10.75 percent excise tax, and 3 percent local tax on retail sales. The DOR says it expects to collect $82 million from pot taxes in fiscal year 2019, and that it will issue its marijuana-taxation regulations in the spring.

FEB. 7:

Baker and Lelling meet.

FEB. 8:

The governor tells reporters that anything beyond straight retail storefront sales is going to be "a gigantic lift" for the CCC once business starts. "Some of this other ancillary stuff, if that's something they want to come back to at some point, I don't see any reason why they can't," Baker says. "But I'm deeply concerned based on my conversations with local officials, people in public health and a lot of other folks, that if they try to unwrap the entire package straight out of the gate, the role and responsibility they have as an overseer and as a regulator is going to be compromised."

Members of the Cannabis Advisory Board’s Market Subcommittee meet specifically to reaffirm their contention that anything less than a full rollout will strike a blow to the very communities a broader licensing approach is supposed to help: low-income, disadvantaged places hurt the most by the illegal marijuana trade.

FEB. 9:

The Baker energy-and-environmental affairs secretariat writes the CCC recommending that before expanding allowable sales beyond retail storefronts, the commission should develop and implement regulations ensuring the new marijuana trade is an energy-efficient and environmentally-responsible enterprise.

FEB. 12:

House Speaker Robert DeLeo says he objects to the expansiveness of the draft regulations. "I feel that we're probably going a little bit quicker than I would like to see in terms of these other issues coming up whether they be selling door to door delivery, whether they be cafes or whatnot," DeLeo tells reporters. He says the House might consider taking up additional legislation to clarify the marijuana law, but he has no plans to do so anytime soon.

Baker Public Safety Secretary Daniel Bennett writes to the CCC. "We believe that the difficulties of safely administering the adult use market in the near term will be multiplied by the proposed licensing of social consumption establishments, mixed-use social consumption establishments, and home delivery retail services," the secretary says.

Asked about the renewed political wars over how much legal pot to allow, Hoffman tells Colin Young of the News Service: "I think the process is working exactly the way it should, which is that we put our draft regulations out, we're getting feedback and comments from elected officials, from industry groups, from advocacy groups, and we're going to go and meet in public again. And we'll talk about the feedback and we'll try to make the best judgments we can about what modifications are needed to our draft regulations before they're finalized."

FEB 13:

Hoffman says the commission will consider a tiered rollout, with retail storefronts only at first, and while it's a possibility, no decisions have been made. "We're absolutely going to talk about that and if we do decide to not issue certain categories of licenses on day one we're not going to leave them open-ended, we'll say 'here's our timeline for subsequent rollout,' " Hoffman tells the News Service.

FEB. 14:

Baker’s Department of Public Health joins the administration chorus urging a limited rollout, writing to the commissioners that allowing a wide-scope retail launch will have "negative consequences to public health and safety...DPH's overarching recommendation is therefore that the Commission simplify its approach and focus its current efforts on what Chapter 94G mandates: the licensing and oversight of a basic adult use supply chain from cultivation to manufacturing, to health and safety testing, to storefront retail sales."

FEB. 15:

The industry hits back, with Marijuana Policy Project leader Jim Borgeshani (who will moderate the March 2 discussions) accusing the administration of running a "coordinated intimidation campaign" against a broad-scope launch for retail. Borgeshani and others who worked to pass legal pot say that if small businesses like cafes and delivery services aren't allowed in the market from the get-go, they'll never get a chance to compete fairly against well-financed retailers who go first.